How To Manage Expectations With Rising Asking Prices

Selling your home is difficult and it is important that homeowners are aware of the challenges they may face in the property market. Even though there is a prominent level of demand for houses across the UK, selling a home is a challenge. There is no guarantee that your home is the one that people will fall in love, and there is no guarantee that you will sell you home for the expected price.

Even though buyers outnumber sellers in the market, this is not a sellers’ market. In fact, information provided by NAEA Propertymark suggests that sellers are not making sales at the level they hoped or expected to. In the UK property market in 2018, there is a growing gap between asking prices and selling prices, and some sellers are left disappointed.

NAEA Propertmark have highlighted the growing gap between asking prices and sales prices

In the end of year review, NAEA Propertymark highlighted the fact that 77% of homes sold for less than the initial asking price. By February of 2018, this figure had dropped to 74% but by March of 2018, the figure has risen again and 84% of homes sold for less than the initial asking price.

This is hugely concerning and a lot of the blame for this situation has been directed to estate agents. You can see why an estate agent, keen to win instructions in a competitive market would look to raise expectations of clients. Indicating that a home can sell for a higher price is an excellent way to make a homeowner warm to your services and choose you over a range of estate agents, bit of course, if the home doesn’t sell for this price, the homeowner will eventually be disappointed.

Short-term needs often trump long-term importance in the property market

In the long-term, this can be bad for the estate agent and the market but given the importance of the short-term in the industry, you can see why many professionals’ acts in this way. However, with so much information about asking prices being shared, it is best to properly manage the needs and expectations of tenants and this is something that Link Up is happy to provide.

Some of the ways that a dependable estate agent will manage expectations of a homeowner include:

  • Discussing the initial expectations that a property owner has for their sales price
  • Considering what next step the property owner is looking to make in the property market
  • Ascertain what, if any, research the property owner has carried out into the local property market
  • Review the property market and examining the difference between asking prices and sales prices
  • Reviewing the condition of the home and evaluating where it compares with average homes in the area
  • Examining market trends and determining if the local area is experiencing a significant gap between asking prices and sales prices
  • Study the house and determine if steps can be taken to improve the value of the home

While it can be nice to daydream or hope for the best outcome, given the importance of property, it is essential that homeowners are realistic with their expectations when selling their home. Link Up is pleased to have helped many homeowners in and around Hillingdon to sell their home and when it comes to managing expectations, we aim to provide a realistic and genuine service at all times.